Tesla used car prices are finally dropping

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Dan Smith MARCH 6, 2024

Used Tesla car prices are finally starting to fall. That's good for the affordability of Tesla's cars, but it would put pressure on demand for the company's new cars. As Tesla has increased its new car prices over the past few years, the prices of used Tesla cars have also risen rapidly. Earlier this year, pre-owned Model Y prices started to run wild and began selling for more than new Model Ys. Prices for used Tesla cars are finally starting to come down this month as Tesla offers discounts on new cars before a new federal tax credit goes into effect next month. Reuters We reported on data showing that the average price of a used Tesla has fallen 17% from its peak in July.
The average used Tesla price in November was $55,754, down 17% from the July high of $67,297. According to Edmunds' data, the overall used car market fell 4% during that period. Used Tesla cars were in dealer inventory for an average of 50 days in November, compared to 38 days for all used cars.
The data also shows that the practice of people flipping Tesla cars is gone due to falling prices. The 2022 price hike and long order backlog had many people buying new Teslas at higher prices on the used car market for those who didn't want to wait up to six months for a new car. By August, one-third of used Tesla cars on the market were 2022 models, according to data. By not using the franchised-dealer model and owning all of its stores, Tesla has a great deal of leverage in the used car business. In September, Jimmy Douglas, Tesla's director of sales and delivery operations, pointed out that he claimed the automaker's used-car business was "as big as some publicly traded used-car retailers." While this trend will help make used Tesla cars more affordable, it will also hurt the automakers' growing used-car business.

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